13 to 7 conversion questions

[ddddougggg]

To begin, I want to tell you that I am a lien stripping success story even though my BK is not yet discharged!*

A couple of years ago Wells Fargo, who held the second, stopped accepting payments from the trustee. The trustee then changed the percentage to all my other creditors. About a year and a half later (December 2014), I received a very unexpected full reconveyance filed by WF. They have completely surrendered the lien!

This all leads me to this question: If the only reason for filing the 13 in the first place was to strip the lien (i.e., we passed the means test for a 7 but decided not to in order to accomplish the lien stripping), is there any reason why I should not now convert to a 7 and finish this mess a year early?*We should be able to exempt our house


How would this impact our credit? I know that a 13 is 7 years from filing. Would the clock (10 years, I understand) on the chapter 7 start from the original filing or from the date of conversion, or even discharge?

Thanks,
Doug

[LadyInTheRed]

Don't worry about your credit. That is not what is important. That said, I think but am not positive, that the clock starts on your original filing date.

If you haven't already done so, the first thing you need to do is check the county recorder records to make sure Wells Fargo recorded a reconveyance of the deed of trust. If they did, then your decision should be based on what is most beneficial financially.

To convert, I am pretty sure you must pass the means test on the conversion date. Do you still pass the means test without including the payment on the 2nd mortgage?

Since you passed the means test, I assume you have a pretty low plan payment. Does your total remaining plan payments exceed what it would cost in attorney fees to convert? IMO, that is what your decision should be based on. But, you may decide it is worth a certain amount of money to be done with your BK.